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The prize: one major motorcycle manufacturing plant complete with more than 1,500 jobs.
"All the negotiations are going on behind closed doors," said John H. Boyd , president of The Boyd Co., a Princeton, N.J.-based site-selection consulting firm. "It's so competitive."
On Wednesday, Harley said it had narrowed its focus regarding the future of its Touring and Softail production lines.
Basically, the company is deciding whether to restructure and retain its operations in Springettsbury Township or shift the plant to Kentucky.
"To be among the final two candidates in this process is a testament to the work force, business climate, and overall quality of life which Kentucky offers," said Kentucky Gov. Steve Beshear . "We look forward to continuing our discussions with a world-renowned company such as Harley-Davidson."
Previously, Harley had considered locations in Indiana, Tennessee and Missouri as possible relocation sites for its local operations.
Now that Harley's options are down to keeping its plant in York County or moving it to Kentucky, what each state is willing to offer in incentives has become critical, Boyd said.
Rendell has said that the state and the company are in negotiations about an incentive package anticipated to be
Michael Smith, a spokesman for Gov. Ed Rendell, said the fact that Harley eliminated Tennessee, Missouri and Indiana from its list of possible relocation sites has not impacted the amount of the package.
"We will continue our dialogue with union leaders and the company to ensure that the company remains in York," he said.
Alternatively, Kentucky is still working on an aid package. The Kentucky Economic Finance Authority, the entity that approves incentive packages, has not formally approved a package in regards to Harley, said Mandy Lambert, spokeswoman for the Kentucky Cabinet for Economic Development.
"The state works with companies to negotiate incentive packages that would be put before the authority," she said. "Any potential incentive packages are confidential until they are approved by the board."
Previously, Rendell said that Pennsylvania's incentive package was competitive with those put up by other states, including Kentucky.
Regardless of the current value of Pennsylvania's package, the amount could increase as negotiations between Harley and the two states intensify, Boyd said.
"There are not many projects like this of this magnitude," he said. "This will play out."
Kentucky does have prior experience in offering "very compelling incentive packages when targeting trophy projects such as Harley," Boyd said.
For example, more than a decade has passed since Toyota selected Georgetown, Ky., in which to build its assembly plant, he said.
Aside from the jobs it could, a Harley plant would also bring with it to Kentucky the prestige of an iconic brand.
"Harley brings both the steak and the sizzle," Boyd said.
Also, in regards to representation, the chances of a Harley plant in Kentucky having a union is lower than in northeastern states.
Both Kentucky and Pennsylvania are not right-to-work states.
Right-to-Work refers to a worker being able to work at a company without necessarily joining a union when one is in place, which puts less power in the hands of unions.
However, the Kentucky labor climate tends to follow that of other southeastern states, like Alabama and Georgia, in which unions are not as influential compared to Pennsylvania, Boyd said.
What York County does have more in supply of compared with Kentucky is a strong pool of skilled metal workers.
"Gov. Ed Rendell is good negotiator," Boyd said. "He is highly qualified to lead these types of negotiations."
